Chinese smartphone-turned-electric vehicle maker Xiaomi reported Fiscal fourth-quarter net profit jumped 90% from a year earlier to 9 billion yuan ($1.24 billion) on surging revenues as the firm benefits from its pivot into the auto space. The tech firm, which is the world’s third largest smartphone maker, said revenues rose by 49% to 109 billion yuan, driven by strong sales in the electric vehicle and smartphone businesses.
Xiaomi Raises EV Guidance
Xiaomi, which only began making EVs last year with its SU7 Sedan, also raised its target for electric vehicle sales this year to 350,000 from 300,000. For the full Fiscal 2024 year the company posted 32.8 billion yuan ($4.4 billion) in revenue for its EV business last year and delivered more than 136,000 SU7 sedans.
While the still-loss-making EV business has captured the headlines, its smartphone and connected home devices divisions remain the main source of revenues for the time being. Sales from its smartphone business were up 16% to 51.3 billion yuan. Margins in this segment improved to 12% as selling prices ticked up. In the fourth quarter of 2024, revenue of Internet of Things (IoT) connected devices segment reached 30.9 billion yuan, an increase of 51.7% year-over-year. For the whole of 2024, the EV business posted a net loss of 6.2 billion yuan.
Across the business, full-year net profit increased 35% to 23.58 billion yuan as revenue climbed 35% to a record 365.91 billion yuan. Smartphone revenues rose 21.8% for the year, while sales from its IoT and lifestyle products business grew 30% over the year. The company noted that the number of connected IoT devices (excluding smartphones, tablets and laptops) on its platform reached 904.6 million, up 22.3% year-over-year.
Looking ahead, Xiaomi said it plans to expand its store network across China this year and open 10,000 new Mi Home stores overseas in the next five years.
Is XIACF a Good Stock to Buy?
On Wall Street, analysts have a Strong Buy consensus rating on Xiaomi stock, based on seven Buys and one Hold. The average XIACF price target however implies downside of almost 10%, though the figures are liable to be updated after the earnings release.
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